GM to Halt Development
Of New Rear-Wheel Drive Cars

By

Lee Hawkins Jr. and

Neal E. Boudette Staff Reporters of The Wall Street Journal

Updated March 21, 2005 9:19 p.m. ET

DETROIT -- In another sign of belt-tightening by the world's largest auto maker, General Motors Corp. on Monday confirmed it is halting development of several new rear-wheel drive automobiles originally planned to arrive in the U.S. market in 2007 and 2008.

The company said it is shifting engineering teams and money from the rear-wheel drive models to speed the launch of other vehicles due in the next 12 months mainly a series of...